The latest federal spending bill, which recently passed, includes a provision that could significantly impact the burgeoning hemp industry by imposing strict limitations on certain hemp-derived products. This legislative update targets psychoactive hemp products that were previously permitted under both state and federal regulations.
Originally, the 2018 Farm Bill allowed for hemp-derived cannabinoids, such as Delta-8, to be legally marketed as long as these products contained less than 0.3% tetrahydrocannabinol (THC). This law enabled manufacturers to convert cannabidiol (CBD) from hemp into psychoactive cannabinoids, claiming these were legally derived from hemp.
In Nebraska, state laws align with the 2018 Farm Bill; however, Attorney General Mike Hilgers has taken legal action against numerous retailers, accusing them of selling products with excessive THC levels and mislabeling.
The new provision in the federal spending bill seeks to address what some have termed a “loophole.” It mandates that products cannot contain more than 0.4 milligrams of THC per container, must originate from hemp with less than 0.3% THC by dry weight, and should not be chemically altered into other cannabinoids.
This legislative change has elicited reactions from both industry stakeholders and regulators, including local Nebraska hemp producers.
Brett Mayo, chief marketing and extraction officer at Sweetwater Hemp Company, expressed concern that the federal provision could detrimentally affect the hemp sector. “I think it’s very unfair how they’re doing it and how they’re trying to hide it with all the other things that are going on in the country right now. They’re trying to hide it from somebody so they can just push it through,” Mayo remarked. “It’s going to affect the entire thing from a grower to a producer to a retailer.”
Mayo emphasized the need for better education on Nebraska’s hemp industry among consumers and regulators, inviting Nebraskans to visit their facility to gain a better understanding. “What’s being affected is very misunderstood. It isn’t the cannabinoid itself that hurts anybody, it’s the stuff in the products because of the lack of testing and what is happening in the state of Nebraska,” he noted. “We want regulation giving directions to what you want done, and we will follow those rules and regulations. But if you continue to not do that and just ban, it’s just eliminating something that can be very beneficial to Nebraska.”
On the regulatory front, Nebraska Attorney General Mike Hilgers acknowledged the federal action’s impact on the state’s ongoing litigation and enforcement strategies. “The federal action will shut down the market for harmful THC products, leaving the larger industrial hemp market untouched,” Hilgers stated in an emailed communication. “This action is enormously important for the safety of kids and communities, which is why a bipartisan group of nearly 40 state attorney generals urged its passage. We are evaluating the impact on our current litigation and enforcement efforts.”
The Attorney General’s office provided Nebraska Public Media with a letter from the National Association of Attorneys General, co-signed by Hilgers and 40 other attorney generals from various U.S. states and territories. The letter calls for federal lawmakers to clarify the legal definition of hemp, citing the 2018 Farm Bill has been misused by some to market recreational synthetic THC products nationwide.
